Saturday, September 3, 2011

Fed Budget Deficit Made Simple

From Bill Teitelbaum:

Numbers and political information can be so confusing.... 
I think this simple analogy will be helpful to gain an understanding whether we should be concerned or not... 
U.S. Tax revenue: $2,170,000,000,000 
Fed budget: $3,820,000,000,000 
New debt: $ 1,650,000,000,000 
National debt: $14,271,000,000,000 
Recent budget cut: $ 38,500,000,000 
Let's remove 8 zeros and pretend it's a household budget: 
Annual family income: $21,700 
Money the family spent: $38,200 
New debt on the credit card: $16,500 
Outstanding balance on the credit card: $142,710 
Total budget cuts: $385 
Understand those "deep" cuts now? 

Cheers, Mel